Bitcoin Accounts To $2 Billion For Tesla’s Investment

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Tesla held about $1.5 billion at the beginning of 2021. As per the annual report of the service and exchange commission, Tesla recorded about $2 billion of bitcoin holdings by the end of the year. The company looks at cryptocurrencies as both an investment and a realizable asset. The price of bitcoin was found to be about thirty thousand dollars by the middle of the year 2021, but it again went up to almost double by the close of the year. Tesla is the second worldwide company that holds ownership of bitcoin.

The company aims to manufacture products that are suitable for the environmental conditions of upcoming generations. Elon Musk has always succeeded in achieving all of his goals. He is known for being a visionary and producing products that are highly distinct. When he started using bitcoin as a means of payment, he realized this may go against his policy of producing products that are suitable for the environment. He thus stopped there, keeping in mind the environmental issues. There have been discussions that imply that the company may restart accepting bitcoin as a payment option.

Also Read: Elon Musk sold another $1 billion in Tesla shares

In the past few years, with the emergence of digital assets like cryptocurrencies, especially bitcoin, Elon Musk has also expressed his interest in them. He believes bitcoin to be a great long-term investment tool rather than a mere payment option. Tesla has been able to set boundaries for bitcoin as an investment tool that does not affect their short-run earnings or profit and loss ratio.

Tesla calculated that Bitcoin profited them by $27 million by canceling out the gains and losses of the transactions carried throughout the year. This record has also been updated by the Securities and Exchange Commission.

The company stated that they are constantly working on their investment strategies. They are making smart investments in securities, digital assets, etc. to cover the risks and contingencies of the future. Elon Musk has several times remarked that Dogecoin, a cryptocurrency motivated by a meme, is a great way of making transactions rather than bitcoin. But there is no record of the company’s dogecoin holdings.

Also Read: Elon Musk’s One-day Wealth Gain 2,71,50,00,000,000

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